B.C. commercial real estate sales were strong in the first half of 2014 despite no big “trophy” sales, according to a September 5 report by Avison Young.
There were 56 transactions that combined to total more than $852 million worth of commercial real estate transactions across the province in the first half of 2014, the real estate firm revealed in its mid-year B.C. Real Estate Investment Review.
That’s the third highest number of deals and total value of commercial real estate transactions since the first half of 2002.
Only one of those transactions was for more than $50 million – an $86.9 millon transaction that took place when H&R Real Estate Investment Trust sold its 50% interest in the oft-called “boot building” at 3777 Kingsway, which Telus has occupied for decades, to Crestpoint Real Estate Investments.
Avison Young statistics showed that 71% of all deals were for less than $15 million.
“Property owners aren’t selling because it’s virtually impossible to replace the asset,” said Avison Young principal Michael Gill. “Owners know that real estate in Metro Vancouver has been very profitable, and with today’s compressed cap rates, they could achieve a very substantial profit if they sell.”
Private investors remained the most active as both buyers and sellers in the first half of 2014, according to Avison Young.
As for asset types, retail remained in strong demand in the first half of 2014 with 28 sales and $310 million in dollar volume.
That compared with 15 office transactions that totaled $380 million and 13 industrial real estate sales valued at $163 million.
